Thursday, April 21, 2011

Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Stanley bigwigs?by Matt TaibbiAmerica has two national budgets, one official, one unofficial. The official budget is public record and hotly debated: Money comes in as taxes and goes out as jet fighters, DEA agents, wheat subsidies and Medicare, plus pensions and bennies for that great untamed socialist menace called a unionized public-sector workforce that Republicans are always complaining about. According to popular legend, we’re broke and in so much debt that 40 years from now our granddaughters will still be hooking on weekends to pay the medical bills of this year’s retirees from the IRS, the SEC and the Department of Energy.

Christy is the wife of John Mack, the chairman of Morgan Stanley. Susan is the widow of Peter Karches, a close friend of the Macks who served as president of Morgan Stanley’s investment-banking division. Neither woman appears to have any serious history in business, apart from a few philanthropic experiences. Yet the Federal Reserve handed them both low-interest loans of nearly a quarter of a billion dollars through a complicated bailout program that virtually guaranteed them millions in risk-free income.

The technical name of the program that Mack and Karches took advantage of is TALF, short for Term Asset-Backed Securities Loan Facility. But the federal aid they received actually falls under a broader category of bailout initiatives, designed and perfected by Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner, called “giving already stinking rich people gobs of money for no fucking reason at all.” If you want to learn how the shadow budget works, follow along. This is what welfare for the rich looks like.

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About Me

The late great comedian George Carlin once said "life's a beach"...the world is changing at an alarming rate, for some , its a life or death struggle and for others its another media event on the nightly news, like the 44th President Barack Obamas landslide win in the worst world economy since the 1929 crash. And the killing of Osama by Obama!
and in 2016 Trump 45th President Of The USA. Bush's Republican playbook.
This blog is this bloggers effort to chronicle history as its being made,I will attempt to blog the events that fall under the categories of being strange,weird,curious,mediocre and the most significant events of your life and mine. These grabbed headlines during the years of your lifetime and mine.